Decree 79/2021/ND-CP amending Decree 97/2018/ND-CP on re-lending ODA loans and foreign preferential loans of the Government GOVERNMENT ——- SOCIAL REPUBLIC [...]
| GOVERNMENT ——- |
SOCIALIST REPUBLIC OF VIETNAM Independence – Freedom – Happiness ————— |
| Number: 97/2018/ND-CP | Hanoi, August 16, 2021 |
DECREE
AMENDMENTS AND ADDITIONS TO SOME ARTICLES OF DECREE NO.97/2018/ND-CP JUNE 30, 2018 ON BACK LENDING OF ODA LOANS AND FOREIGN PREFERENTIAL LOANS FROM THE GOVERNMENT
Pursuant to the Law on Government Organization dated June 19, 2015; Law amending and supplementing a number of articles of the Law on Government Organization and the Law on Local Government Organization dated November 22, 2019;
Pursuant to the Law on Public Debt Management dated November 23, 2017;
Pursuant to the State Budget Law dated June 25, 2015;
Pursuant to the Law on Public Investment dated June 13, 2019;
At the request of the Minister of Finance;
The Government issues a Decree amending and supplementing a number of articles of Decree No. 97/2018/ND-CP June 30, 2018 on re-lending of ODA loans and foreign preferential loans of the Government.
Article 1. Amendments and supplements to a number of articles of Decree No. 97/2018/ND-CP June 30, 2018 on re-lending of ODA loans and foreign preferential loans of the Government
1. Amend and supplement Clause 3 Article 16 as follows:
“ 3. The value of the loan security assets is at least equal to 120% (one hundred twenty percent) of the outstanding loan balance in the case of on-lending to businesses and 100% (one hundred percent) of the outstanding loan balance in the case of on-lending to public service units. During the process of making the loan, if the value of the loan security asset decreases lower than the level specified above, the borrower has the right to responsibility to add assets to secure the loan to ensure the minimum level.”
2. Amend and supplement Clause 4 Article 16 as follows:
“4. Loan guarantees are not required in the following cases:
a) Re-lending to the Provincial People's Committee;
b) Loans are received by the Project Management Board of the Ministries, then transferred to the Provincial People's Committee.”
3. Amend Clause 1 Article 21 as follows:
“1. On-lending rate for Provincial People's Committees:
a) Localities have a balanced supplement rate from the central budget compared to the total balanced local budget expenditure of 70% or more, with a re-lending rate of 10% of ODA loans and preferential loans;
d) Localities have central budget regulations (except Hanoi and Ho Chi Minh City), the re-lending rate is 70% of ODA loans and preferential loans;
đ) Hanoi City and Ho Chi Minh City: on-lending rate is 100% of ODA loans, preferential loans;
e) For a number of programs and projects related to sustainable development adapting to climate change of some localities in the Mekong Delta that the Government needs to support according to the Government's direction in Resolution No. 41/NQ-CP April 1, 2021 The re-lending rate will be decided by the Government but not lower than 10%.
4. Additional points c Clause 2 Article 21 as follows:
“c) In case a different on-lending rate is applied to the subjects specified in Points a and b, Clause 2 of this Article, in the process of developing a financial mechanism for ODA loans and concessional loans, based on the request of the managing agency and the sub-borrower, the Ministry of Finance shall preside over and coordinate with the Ministry of Planning and Investment and relevant agencies to submit to the Government for consideration and decision on the on-lending rate for each specific case. but not less than 10%.”
5. Add clause 3 Article 23 as follows:
“3. In addition to the provisions in Clause 1 of this Article, the authorized on-lending agency that does not bear credit risk has the following responsibilities:
a) Appraise on-lending to businesses and public service units and report on-lending appraisal results to the Ministry of Finance, which confirms the project's ability to pay back capital; ability to repay re-borrowed capital of enterprises and public service units;
b) Organize and manage on-lending and debt recovery, ensure full and timely repayment to the Ministry of Finance according to the results of on-lending appraisal and on-lending authorization contract;
dd) Supervise the sub-loan, the financial situation of the sub-borrower, the exploitation and operation of the project invested with the re-borrowed capital, periodically and unexpectedly carry out inspection of the sub-loan, the sub-borrower and report the results to the Ministry of Finance;
6. Amend and supplement Clause 1 Article 31 as follows:
“1. Within 30 days from the date of signing the re-lending contract for the re-borrower that is a public service unit or enterprise, the re-borrower and the authorized re-lending agency sign a loan security contract and the authorized re-lending agency sends a copy of the signed loan security contract to the Ministry of Finance.”
7. Amend and supplement Clause 1 Article 32 as follows:
“ 1. The sub-borrower is the Provincial People's Committee reporting to the Ministry of Finance, the sub-borrower is a public service unit, the enterprise reports to the authorized on-lending agency twice a year, the first time is not later than July 31 of the implementation year for the reporting period from January 1 to June 30 of the implementation year and the second time is not later than February 15 of the following year for the reporting period from January 1 to June 30, 2020. July 1 to December 31 of the implementation year on the on-lending situation with the following contents:
a) Situation of capital withdrawal, debt repayment, loan balance;
b) Fluctuations in assets securing the loan;
c) Financial situation and debt status of the sub-borrower including outstanding debt and overdue debt (if any) with any creditors;
d) Situation of implementation, operation, exploitation of investment projects, situation of management and use of assets of investment projects and assets formed from loan capital."
8. Amend and supplement Clause 2 Article 32 as follows:
“2. The authorized re-lending agency reports to the Ministry of Finance twice a year, the first time no later than August 31 of the year of implementation for the reporting period from January 1 to June 30 of the year of implementation and the second time no later than February 28 of the following year for the reporting period from July 1 to December 31 of the year of implementation or as soon as an unexpected problem arises that affects the the debt repayment ability of each sub-borrowing project and the sub-borrowing party regarding the contents stated in Clause 1 of this Article."
9. Amend and supplement point b clause 1 Article 35 as follows:
“b) For overdue debts from 02 periods to 03 periods: The re-borrower is an enterprise that re-borrows under the method of an authorized re-lending agency bearing credit risk, at least 15 days before the next nearest repayment period, must maintain an account balance with the following minimum level:
– Equal to the next 02 repayment periods if the debt is overdue for 02 periods;
– Equal to the next 03 repayment periods if the debt is overdue for 03 periods.”
10. Amend and supplement Article 3, Appendix II with the content in the Appendix attached to this Decree.
1. This Decree takes effect from October 1, 2021.
2. Programs and projects that have had their investment policies, financial mechanisms, and on-lending conditions approved by competent authorities before the effective date of this Decree may continue to be implemented according to the approval of the competent authority.
3. For overdue on-lending debts of foreign ODA and preferential loan programs and projects that arose before the 2009 Law on Public Debt Management took effect but have not yet been completely resolved, the on-lending agency will develop a risk handling plan for each specific case and send it to the Ministry of Finance to preside and coordinate with relevant agencies to summarize and submit to the Prime Minister for consideration and decision.
Article 4. Responsibility for implementation
Ministers, Heads of ministerial-level agencies, Heads of Government agencies, Chairmen of People's Committees of provinces and centrally-run cities, relevant businesses, organizations and individuals are responsible for implementing this Decree.
Procedures
